Scalping Strategie – System für Forex Trader und Broker

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In order to understand this, you will first imagine the support level as a cushion. When the price came down in a downtrend and hit onto the support level, the first initial low was made by RSI indicator. When price tested the support level for the 2 nd time, RSI made a higher low than the previous one. The third and last method that I am showing today is the Bollinger Bands with engulfing candles method.

If you search the internet, you may come across many different ways of defining an engulfing candle. But for me, I do not care about how other people define it. It is merely because, I only care about what I have tested and proven to work for myself. Okay, now this is how I define engulfing candle…. When candle 1 is a bear candle, and candle 2 is a bull candle that closes above the open price of candle 1, I call this a bullish engulfing setup. When candle 1 is a bull candle, and candle 2 is a bear candle that closes below the open price of candle 1, I call this a bearish engulfing setup.

In a bullish engulfing setup, candle 1 is the last and final bear candle in a downtrend. When candle 2 engulfed and closed above the open price of candle 1, it indicates a change in momentum from down to up. When this setup happens at the lower band, it creates a high probability trade opportunity for buy entry.

In a bearish engulfing setup, candle 1 is the last and final bull candle in an uptrend. When candle 2 engulfed and closed below the open price of candle 1, it indicates a change in momentum from up to down.

Similarly, when this setup happens at the upper band, it creates another high probability trade opportunity for sell entry. Bollinger Bands is a really useful tool that can be used for identifying trade opportunities. It is even more powerful when combined with other tools to create high probability trade setups.

When used properly, Bollinger Bands can become an important part of your overall arsenal of weapons used for Forex trading. These are just high probability trade ideas to assist you in starting to formulate your own trading plans. You must always backtest your strategy to find out how the full trading plan stands against the test of time, before trading live account.

Is this just a marketing ploy, or should the Wikipedia page also display it? I reverted the deletion by https: This is an important use of Bollinger Bands outside of finance that was published in a peer-reviewed journal.

From Wikipedia, the free encyclopedia. This is the talk page for discussing improvements to the Bollinger Bands article. This is not a forum for general discussion of the article's subject. Put new text under old text. Click here to start a new topic. Close alert Thanks for following this author! Close alert You've unfollowed this author. You won't receive any more email notifications from this author. Bollinger Bands consist of three parts: The middle band , which is a N-period simple moving average.

The standard setting is a day SMA. Other moving averages, like the exponential moving average, is also used by some traders. The upper band , which is K standard deviations away from the moving average on the upside. The lower band , which is K standard deviations away from the moving average on the downside. To make this concept clearer, take a look at the following graphic: The Squeeze When the bands come very close together, and the distance from the moving average becomes very small, it is called a squeeze.

The Breakout A breakout occurs when the price closes outside the upper or lower band. The following chart shows a fake breakout: Riding the Bands Another popular strategy based on Bollinger Bands, is riding the bands. The Impact of Fake News on the Markets. Stop-Losses on Covered Call Positions. Futures Contract Rollover Explained. What's trumping Trump for US stocks? The Flash Crash cycle is coming.

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